Halliburton's 2Q Net Dips 0.3% on North America Weakness

By FOXBusiness

Halliburton (NYSE:HAL) logged a 0.3% contraction in second-quarter earnings on Monday as the oilfield-services giant was struck by softness in its North American market.

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Shares of Houston-based Halliburton retreated about 4% in early trading in response to the earnings.

The No. 2 oilfield-services company in the world said it earned $737 million, or 79 cents a share, last quarter, compared with a profit of $739 million, or 80 cents a share, a year earlier.

On a continuing operations basis, Halliburton earned 80 cents a share, topping calls from analysts for EPS of 75 cents.

Revenue climbed 22% to $7.23 billion, trumping the Street’s view of $6.96 billion. Operating margin dipped to 16.6% from 19.6%.

Halliburton reported a 20% rise in revenue in North America, but the segment suffered a 14% decline in operating income. The company’s rig count fell by 17% in North America, which was hurt by rising costs and pricing pressure.

“I am pleased with our second quarter results, which set a new revenue record for the total company and all three of our international regions,” CEO Dave Lesar said in a statement.

Overall international growth jumped 24% year-over-year and by 15% from the first quarter.

“Going forward, we intend to maintain our market leading position in North America, strengthen our international margins, and grow our market share in deepwater and in underserved international markets,” said Lesar.

Wall Street punished Halliburton for the decline in earnings, sending its shares 3.67% lower to $29.64 Monday morning. The selloff leaves the shares down almost 14% so far this year.